Bain: Small business plans are being impacted by quickly rising costs

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Bain: Small business plans are being impacted by quickly rising costs

Nassau, The Bahamas -Price volatility is making business planning that more difficult for clients of the Access Accelerator Small Business Centre, its Executive Director Davinia Bain told Guardian Business recently, explaining that well-thought-out use of funds plans are being hit with unexpected costs.

According to Bain, some Access Accelerator clients have seen costs triple in some cases, after completing their business plans.

“When we would have started, volatility in prices was predictable because we’re talking about a world pre-Dorian and pre-pandemic. Now even if you do a business plan today and you account for miscellaneous variances, typically that variance is between five to ten percent max, but you’re finding between the time you’re approved by us, you’re approved by a financial institution, then you literally start to purchase the goods and services for your business, because the volatility in pricing is so high, said Bain.

“The timeframe allows for a lot of difference. We found that some people in month one would have estimated $10,000 for shipping, but by month two this has doubled for some people, and tripled for others.”

She said a current example of volatility that is disrupting businesses is the price of fuel, which has surged due to the war in Ukraine.

Bain said building supplies has also had the same effect on new entrepreneurs hoping to get their businesses off the ground.

“So while you would have had a well-thought-out use of funds plan, by the time it happens it’s a different story,” she said.

“Now we have to resharpen our tools all over again and account for a different level of price volatility with use of funds and make sure that that’s constantly being updated based on what’s happening.”

Bain said there has been no softening in Bahamians interest in the Access Accelerator and its ability to make dreams of running a business come true.

“You’re not going to see a reduction anytime soon,” she said. “Collectively there has been so much attention on small business development.”

Written By: Chester Robards |